UK food and drink exports plunge as imports surge, widening trade deficit

Data from the Food and Drink Federation show that UK food and drink exports declined 11.7% in the first half of 2026, placing them at the third-lowest level historically. The fall was most pronounced in non-EU markets, which slipped 6.9%; the ongoing war in Iran and broader Middle-East instability drove a 23.4% drop in shipments to the United Arab Emirates, while tariff measures in the United States trimmed US exports by 16.5%.

At the same time, imports rose to the second-highest point on record, widening the sector’s trade deficit to its greatest size in more than 25 years. Karen Betts, chief executive of the FDF, warned that rising costs for energy, ingredients, logistics, packaging and labour, combined with complex post-Brexit regulations, threaten the industry’s competitiveness and raise food-security concerns. The report highlights how geopolitical conflict and trade barriers are compounding pressure on UK manufacturers.